Russia and Indonesia plan to achieve $5 billion in trade between the countries by the end of this year and repeat that goal in 2016, Indonesia’s ambassador to Russia said Wednesday.

MOSCOW (Sputnik) – A Russian and Indonesian Intergovernmental Commission set a goal in April to realize $5 billion in trade between the countries by the end of 2015. Russia's trade representative to Indonesia Sergei Rossomakhov last week indicated a figure of $10 billion by 2018.

“We need to actively move in this direction, especially given the commitments our governments have made, namely the achievement of $5 billion in mutual trade turnover. There are plans to achieve this level by the end of 2015 and 2016,” Ambassador Djauhari Oratmangun told RIA Novosti in an interview.

The envoy suggested that improved political relations will positively affect commerce, noting a lack of “aggressive attitude and a readiness to seize new opportunities” among companies in both nations.

Oratmangun suggested that both Russian and Indonesian business communities could take advantage of the sanctions imposed on Russia by the United States, the European Union and their allies over the past two years.

“They need to be more proactive to take advantage of those benefits that currently exist,” the diplomat stressed. “This task is feasible if there is the will and desire on both sides.”

Oratmangun said “even new possibilities for interaction” are available despite challenging circumstances, citing $3.67 billion in commerce last year and $2 billion by mid-2015.

A Russian business delegation is scheduled to visit Indonesia later this month or early December. Possible aerospace technology, shipbuilding, and mining projects are likely to be presented during the visit.

Indonesia Not Currently Considering TPP Membership

Indonesia is not yet considering membership in the hotly-debated Trans-Pacific Partnership (TPP) trade pact led by the United States, Indonesia’s ambassador to Russia said.

"At least so far, Indonesia is not evaluating the possibility [of joining TPP], but is only studying the creation of the TPP," Djauhari Oratmangun told RIA Novosti.

Oratmangun said Indonesian Foreign Minister Retno Marsudi has announced that she was waiting to view a finalized text of the deal to study the pros and cons of Jakarta’s membership in the controversial trade pact.

The 12 Pacific Rim nations reached an agreement on the pact’s wording early last month. The TPP is expected to be heavily promoted but it remains unclear whether US President Barack Obama can see it ratified before the end of his term in early 2017.

"If there is no paperwork and the terms are unclear, how can we seriously consider the possibility of joining," the envoy observed, adding that Indonesia’s priority is to launch the Association of Southeast Asian Nations (ASEAN) Economic Community later this year.

Indonesian President Joko Widodo announced last month his intention to join the TPP. Japan and Australia subsequently welcomed Indonesia's objective.

Ambassador Oramangun confirmed that the TPP, whose ongoing negotiations have been shrouded in secrecy, has not been on the agenda of the Asia-Pacific Economic Cooperation (APEC) summit currently underway in the Philippines.

Mohamad Iqbal Djamil, an Indonesian Ministry of Trade APEC Directorate official, told Sputnik on Monday it could take up to two years for Indonesia to join the TPP, if the deal is ratified.

PHNOM PENH, November 23. /TASS/. Russian Prime Minister Dmitry Medvedev is completing his Asian tour with a visit to Cambodia, where he arrived on Sunday, the government press service reported.

Medvedev, who will be in Cambodia until November 24, is expected to hold talks with his Cambodian counterpart Hun Sen and meet with King Norodom Sihamoni. A number of bilateral documents are to be signed following the talks.

By supplying high-octane naval hardware to Indonesia, Russia is not only gaining a strategic foothold in the Asia-Pacific, it is also contributing significantly towards the archipelago’s long-term security.

In May 2014, when Indonesian President Joko Widodo took office, he reiterated his call to transform Indonesia into a maritime nation and invoked the Sanskrit slogan – Jalesveva Jayamah or Victorious on the Sea.

“We’ve turned our back on the seas, oceans, straits and bays for far too long,” he said. “It is time for us to realise Jalesveva Jayamahe, a motto upheld by our ancestors in the past.”

Jokowi, as the President is popularly known as, said that to develop Indonesia into a great nation Indonesia must possess the heart of Cakrawarti Samudera, another Sanskrit term meaning Emperor of the Seas.

Jokowi was not being unduly nationalistic. Indonesia faces a complex strategic environment both internally and externally. The dominant theme in its immediate East Asian vicinity is the tangle of territorial disputes that poses a direct threat to regional stability. At the same time, maritime piracy in Indonesian waters has been a constant worry for decades. According to some estimates, the country annually loses up to $3 billion from illegal logging and $8 billion from illegal fishing. Clearly, if there’s any country that needs a strong navy, it is Indonesia.Russian connection

The new President is building maritime links with a number of East Asian as well as non-regional powers to strengthen the country’s defences. Russia is one of them. Growing Russia-Indonesia defence ties can more accurately be described as a return to the good old days.

Russian-Indonesian relations were at their peak in the late 1950s and early 1960s when Moscow provided the bulk of Indonesia’s military hardware, making the country’s defences forces one of the best equipped in East Asia.

Between 1959 and 1965, Russia gave Indonesia one cruiser, 14 destroyers, 14 submarines, eight anti submarine patrol vessels, 20 missile boats and several motor torpedo boats and gunboats. The Indonesian marine corps was also reinforced by armoured and amphibious vehicles, and naval aviation with ASW helicopters and Il-28 bombers.

The Indonesian Navy was thrilled with their new Whiskey-class submarines. The vessels were immediately put into action against the Dutch West Guinea in 1961-1962, and against Malaysia and British Commonwealth forces during Konfrontasi (Confrontation) in 1963-1966.

However, the honeymoon ended when Russia-Indonesia relations went into a freeze as the fiercely anti-communist Suharto allied himself with the US.

Post-Communist Bonhomie

Moscow and Jakarta’s interests converged once again during the 2000s. Ingo Wandelt of Giessen University, Germany, writes in a paper titled ‘Between Economic and Security Interests: Russia’s Return To the Indonesian Archipelago: “The emerging Russian-Indonesian cooperation is a convenient case-study of how a resurgent former-Empire establishes footholds in the largest state of the archipelago that once was firmly in the western sphere of influence.”

He adds: “President Vladimir Putin’s one-day visit to Indonesia on September 6, 2007, signalled the return of an active Russia to Insular Southeast Asia’s largest state. The signing of eight bilateral agreements between the two governments in key fields of strategic cooperation throws some light on the strategic interests of both Russia and Indonesia in world politics.”

Putin reaffirmed historical ties in his address to his host, President Yudhoyono, when he referred to the early 1960s as “the golden age of Indonesian-Russian relations”. “The historical reference in a sense also reaffirmed what was once a major weapons buying relationship between the two countries, indicating that the relationship cannot be seen as purely economic,” Wandelt notes.

Indonesia walked into the 21st century feeling abandoned by its western ‘friends’. It felt betrayed when the U.S., Australia and most of the western world ganged up to pry East Timor from Indonesian control.

“Enter Russia with good quality offers, favourable repayment conditions and a clear statement of non-interference in internal affairs, and it is easy to understand the psychological impact Putin’s offer had on the Indonesian state and army leadership,” says Wandelt.

Jakarta’s creaky juggernaut

The Indonesian Navy will gain the most from the rapidly expanding Russia-Indonesia ties. With approximately 75,000 active personnel and more than 150 vessels in active service, Indonesia has the largest navy in South East Asia. What’s more, the Indonesian Navy is one of a few navies in the region backed by a substantial domestic defence industry, marine corps and armed with supersonic missiles and attack submarines.

But the inside story is that the Indonesian Navy is more rusted than ready. According to a report by Iis Gindarsah of the Jakarta-based Center for Strategic and International Studies, 59 per cent of the Indonesian Navy’s assets are over three decades old.

Indonesia’s biggest problem being finances, the Russian offer of soft loans is a way out of technological obsolescence. “Russia is ready to provide soft loans at cheap rates to buy defence equipment,” Tubagus Hasanuddin, vice-chairman of the Indonesian House of Representatives' Defence Commission said on September 1, 2015.

Hasanuddin was referring to the bilateral discussions over a $3 billion loan to support acquisition of Russian military equipment. Although details about the military equipment to be purchased through the deal were not revealed, Hasanuddin said the loan will be provided at preferential rates.

In Jakarta’s wish list are four Russian Kilo-class 636 submarines and two slightly smaller Lada-class submarines. The diesel-electric Kilos are among the quietest conventionally powered undersea boats in service anywhere and are capable of being equipped with advanced weaponry, including anti-ship and land-attack cruise missiles. These submarines would be among the most advanced conventional submarines in Southeast Asia.

Despite a $490 million cut in next year’s defence budget, the Indonesian Navy announced in September 2015 that it would procure Kilo-class submarines from Russia as part of the 2015-2019 strategic planning. “There are many kinds of Kilo-class submarines. We have yet to decide which type we will purchase,” says navy spokesperson Commander Muhammad Zainuddin.

The Indonesian Navy reportedly wants to buy up to 12 boats by 2024 so the potential for Russia is huge here. “So far, we have two submarines and an additional three Chang Bogo-class submarines that are still under construction in South Korea. So we still need at least seven more submarines,” he said, adding that the seven submarines would probably be Kilo-class vessels.

The Russian Kilos are only the latest of recent buys. In November 2010, Indonesia’s marine corps received 17 amphibious tanks BMP-3F from Russia.

Currently, Indonesia's Ahmad Yani class frigates are fitted with the supersonic Yakhont missile that can destroy ships up to 300 km away. The Yakhont, which is the export version of the P800 Oniks missile, skims the waves at Mach 2.5 (twice the speed of sound), making its detection extremely difficult.

In 2011 the Indonesian Navy frigate KRI Oswald Siahaan test-fired a Yakhont during a naval exercise in the Indian Ocean. The missile took just six minutes to travel 250 km to score a direct hit on the target. At a time when most Southeast Asian navies had – and with the exception of Vietnam, still have – only subsonic cruise missiles, the Yakhont launch marked a significant capability breakthrough in the region.

On the drawing board

Even as Russia and Indonesia tie down defence deals piecemeal, bigger plans lie ahead, with Moscow offering to expand defence industry collaboration. According to Janes, the plan is centred on the "development of defence offset schemes" that encompass technology transfers, joint production in Indonesia of components and structures, and the establishment of maintenance, repair, and overhaul service centres in the country.

According to the Indonesian Ministry of Defence, Russian Ambassador Mikhail Galuzin communicated the offer to Indonesian Defence Minister Ryamizard Ryacudu on January 15, 2015. This follows a similar proposal extended to Jokowi by Putin at the Asia-Pacific Economic Cooperation meetings in China in late 2014.

Indonesia’s strategic conundrum is that its leadership continues to view internal security as more important than the high-stakes manoeuvres happening in its neighbourhood. Its defence spending is currently just 0.8 per cent of GDP, which is one of the lowest in the region. That Moscow has managed to bag these not insignificant defence deals within this context is an indicator of three key developments.

One, it is a measure of the impact of Russian diplomacy in the region. Secondly, there is confidence in Indonesia that Russian weapons can do the job –and well. (As events have proved in Syria, they are indeed doing a fine job.) And finally, unlike the US – which imposed sanctions on the Indonesian military during the East Timor crisis – Russia can be relied upon to supply spares and replenish losses if war breaks out.

Clearly, the Russian way of engagement through security agreements is a win-win for everyone involved. Even as new weapons contracts keep the Russian defence sector humming and the connections they build are helping Russia gain a strategic foothold in the world’s most vibrant economic region, they are contributing significantly towards Indonesia’s long-term security.

Russian Security Council Chief Arrives in Singapore for Security Talks

Russia's Security Council Secretary Nikolai Patrushev arrived in Singapore on Monday for talks on regional and international security, the Council's press service said.

MOSCOW (Sputnik) — The senior Russian security official is expected to hold consultations with local security experts, before moving on to Vietnam as part of his two-day Southeast Asia trip, Patrushev's spokesman Yevgeny Anoshin told RIA Novosti.

In February, Patrushev went to Indonesia and Thailand for a four-day visit to boost cooperation with the the Indonesian Coordinating Ministry for Politics, Law and Security and the National Security Council of Thailand respectively.

The Security Council, chaired by the Russian president, drafts policy proposals on defending Russia's vital interests of individuals and the state against internal or external threats.

Vladimir Putin has noted that the volume of investment in oil refinery construction in Indonesia with the participation of Russia's Rosneft could reach $13 bln

SOCHI, May 18. /TASS/. Russia and Indonesia have signed an intergovernmental agreement on cooperation in defense.

The document was signed in the presence of Russian President Vladimir Putin and Indonesian President Joko Widodo. The signing ceremony took place at the end of bilateral summit talks.

The two countries' Foreign Ministries also signed a memorandum of mutual understanding and cooperation. One more such memorandum was signed by the Russian Federal Agency for Archives and the National Archives of Indonesia.

In addition to it, the sides have endorsed a program of cultural cooperation for the period of 2016 through 2018 and a joint statement between Russia’s Federal Agency for Fisheries and the Indonesian Ministry of Maritime Affairs and Fisheries on prevention of the illegal, unreported and unregulated production of live marine resources and on ensuring steady regulation of the fishing industry.Oil refinery construction in Indonesia

Vladimir Putin has noted that the volume of investment in oil refinery construction in Indonesia with the participation of Rosneft could reach $13 bln.

"Our companies Zarubezhneft, Rosneft have specific, serious large-scale projects," he said. "That includes construction of a modern oil refinery with possible investment in the amount of $13 bln," he added.

Rosneft plans to construct the refinery in the eastern part of the Indonesian island of Java.

According to the Russian leader, there is groundwork for expanding energy cooperation. Putin said construction of a thermal power plant with the help of Inter RAO with a capacity of 1.8 GW is also planned. The investment volume will amount to $2.8 bln. "Rosatom is currently working on the construction of the experimental low-power reactor," he said.Indonesia-EAEU free trade zone

The two leaders have also discussed the issue of setting up a free trade zone between Indonesia and the Eurasian Economic Union (EAEU, which comprises Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan).

While summing up results of Wednesday's talks, the head of Russia's state described them as very useful and successful.

"[We] discussed the whole range of bilateral agenda, mapped out tasks for further development of Russian-Indonesian cooperation," the Russian leader said.

According to Putin, "Russia and Indonesia are linked with long-standing and close relations."Russia ready to assist Indonesia in implementation of infrastructural programs

According to Putin, Russia is ready to provide comprehensive assistance to Indonesia in implementation of infrastructural programs.

"A large-scale regional infrastructural program is implemented under patronage of Mr. Widodo," Putin said. "Russia is ready to render comprehensive assistance to Indonesian partners in implementation of this program" he added.

A joint project of Russian Railways and Indonesia launched last year to build an approximately 190 km long railway on the Kalimantan Island is the most significant in this context, the Russian leader said. "The railway will connect a resources-rich part of the island with a new port and an industry cluster where production and processing plants will be developed, also with participation of the Russian capital," Putin said. Development of coal, ferronickel, manganese dioxide and other deposits is planned, he added.

Russian companies are also ready to supply hydrofoil ships and twin-hulled craft to Indonesia, Putin said.

Exchange of intelligence data

According to President Joko Widodo, Russia and Indonesia are going to expand cooperation in the sphere of intelligence data exchanges in order to rebuff the terrorist threat.

"President Putin and I agreed on consolidation of ties in defense technologies," he said. "We came to an agreement on a transfer of technologies and we’ll be looking at opportunities to streamline their joint manufacturing."

"Also, we are interested in boosting ties in the training of cadres and education," Widodo said.

"We have interest in promoting cooperation as regards the elimination of challenges and threats, in the first place terrorism." Widodo said. "We reached agreement on exchanges of intelligence data and on a broadening of contacts between other state security agencies."

Efforts against terrorism

The presidents have agreed to coordinate efforts in the field of counteraction to terrorism.

"President (Widodo) and I looked at the regional and global problems,' Putin said. "Our discussion included counteraction to terrorism and extremism. Our countries are coordinating efforts in struggle with these threats."

He also told the reporters about an agreement on expanding contacts between the Russian and Indonesian Defense Ministry and national security organizations.

"Our countries continue collaboration in the format of the UN, the Group of Twenty, APEC, the Islamic Conference Organization and, quite naturally in the framework of the Russian-ASEAN partnership dialogue," Putin said.

Visa procedures

According to the Russian president, Russia and Indonesia are working out the possibility to further streamline visa procedures.

"Last year, the Indonesian side imposed a 30-day visa-free regime for Russians. The possibility to conclude an intergovernmental agreement on mutual simplification of visa procedures is being worked out," Putin said.

Officials in the Jakarta, Indonesia's capital, have announced that Russia is set to sell 11 Sukhoi fighter jets to the Southeast Asian country.

The 11 jets worth $1.14 billion will be paid by Indonesia shipping around $570 million in commodities, with the remainder paid on cash.

Indonesia's Trade Minister Enggartiasto Lukita and Defense Minister Ryamizard Ryacudu said in a joint statement on Tuesday that the jets are expected to be delivered in states beginning in two years time.

Lukita had earlier signalled that the commodities to be sent to Russia are "still being negotiated" but will likely include palm oil, tea and coffee.

Efforts are being made between Russia and Indonesia to expand bilateral relations through tourism, aviation, energy, education and technology.

SINGAPORE, November 14. /TASS/. Russian President Vladimir Putin will attend the Russia-ASEAN (Association of South-East Asian Nations) summit in Singapore on Wednesday and hold a number of bilateral meetings with Asian leaders.

"We hope that the president will talk ‘on foot’ with his Indonesian counterpart [Joko Widodo], we also hope that there would be a meeting with South Korean President Moon Jae-in, of course with Japanese Prime Minister Shinzo Abe. There will also be a meeting with the Chinese Prime Minister [Li Keqiang] and the prime minister of the Kingdom of Thailand [Prayut Chan-o-cha]," Peskov said.

According to the Kremlin spokesman, Putin’s talks with Singapore’s Prime Minister Lee Hsien Loong, initially scheduled for Tuesday but adjourned due to the Russian leader’s intense schedule, may take place on Wednesday.Multilateral format

ASEAN currently has ten member nations - Brunei, Vietnam, Indonesia, Cambodia, Laos, Malaysia, Myanmar, Singapore, Thailand and The Philippines. The agenda of the meeting in Singapore includes present-day issues of developing Russia-ASEAN dialogue, issues of trade and economic cooperation, expansion of ASEAN contacts with the Eurasian Economic Union (EAEU) and the Shanghai Cooperation Organization (SCO), including within the context of creating the Greater Eurasian Partnership.

Kremlin aide Yuri Ushakov earlier told reporters that participants of the summit will also coordinate their positions on issues of promoting stability and security in Asia-Pacific.

"The emphasis will be placed on coordinating efforts to counter modern challenges and threats, first of all terrorism and transnational crime," he said.

According to the official, the leaders will also discuss major international issues, including the nuclear problem of the Korean Peninsula. The Russian side will also inform its partners "about our efforts within the context of the Syrian settlement," Ushakov said.

After the summit, the participants plan to adopt a number of documents, including a joint statement and a statement on cybersecurity.

Russia became ASEAN’s dialogue partner in 1996. The previous Russia-ASEAN summit took place in Sochi in 2016.

Russia-ASEAN trade turnover grew by more than 30% this year, to $18.3 billion.